Ibrahim Ahmad Badawi, the younger brother of former premier Abdullah Ahmad Badawi, was awarded the sole sugar manufacturing licence in Sarawak through a normal application process, said International Trade and Industry Minister Mustapa Mohamed.

In a written parliamentary reply to Teo Nie Ching’s (DAP-Serdang), he said Ibrahim’s company Admuda Sdn Bhd was given the licence for Sarawak, while the licence to produce sugar in Sabah went to Gula Sabah Sdn Bhd.

NONE “The approval process is the same as for the licence for other manufacturing activities - that is, through an application - and is not subject to any payment,” Mustapa (left) said.

“The applicant needs to fill the (relevant forms and provide) supporting documents for the consideration of the investment committee at the national level. Approval is based on current policy.”

Mustapa said the government has decided on Dec 23, 2009 to allow Sabah and Sawarak to each have a sugar manufacturer to ensure sufficient and stable supply, as well as to address the problem of high sugar price in the two states.

However, both refineries have yet to start operations.

Teo had asked why the licence had been awarded to Admuda, whether it was done through open tender and who the other bidders were.

Admuda is a 60 percent subsidiary of Brahim's Holdings Bhd, in which Ibrahim is the major shareholder and executive chairperson.

The granting of the exclusive manufacturing licence to the company had initially raised issues of monopoly and cronyism .